The stock has had a lot of attention and movement in the last 60 days. It has also had some intersting buying both in terms of the volume and also in terms of other comanies taking position.The question on evryones mind is why is there a sudden interest in this stock which a lot of pundits had written off. Following is my view on the stock and what we can expect in the next 60 days. This is purely my view and not any financial advice whatsoever. Please do your research (and please share with us too) if there are any other interesting facts about the stock.
Upside : Some aspects of price sensitive announecemnts that we can expect from the company in the next few weeks could include the following:
1. Positive Oil find in the well (Airacobra) being drilled as I write this post. The second well also be declared commercially viable. 2. Flow Test on Fury result in the output of the well being far better than the market expected. 3 The Uranium drilling being done by Raisama at the moment are encouraging and the results good. 4 They are able to source out a good JV for drilling at the Khaziksatn holding on which they have been working for an extended period of time now. 5 Are able to surprise the markets again with an announcement stating the aquasition of a near production asset. Knowing the directors and there connection it is quite possible that this one is on cards especially keeping in light the frantic buying in the stock in the last few weeks.
If any one or two of these announcements happen in the next few weeks I guess the stock would surely be rerated. There could also be some pitfalls one need to consider which I feel are : 1. The Flow Test are not very satisfactory. 2. The second hole draws a blank. 3. Managment again pulls a smart one of mere talk and no action regarding aquaring near term production asset...although I have a gut feel that would not be the case!!!!
In any case the upside far outweighs the downside. The share registry is also getting stronger with 2 major companies taking out stake.... Lets hope and keep fingers crossed and enjoy the journey. Constructive comments and thoughts are welcome .
MHL Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
